Overview
- Following an Eighth Circuit reversal, the Missouri district court entered judgment approving a settlement that vacates the SAVE Final Rule (with one narrow exception), officially ending the program.
- The Education Department says it will, in the coming weeks, provide guidance for enrollees, halt new sign-ups, deny pending applications, and transition borrowers into existing repayment options.
- More than 7 million borrowers in administrative forbearance have had interest accruing since August 2025 and, according to advocates, many will see substantial payment increases under alternative plans.
- A separate lawsuit filed this week by four borrowers seeks immediate implementation of SAVE benefits and loan discharges for those who already qualified, arguing the department is obligated to provide that relief.
- Available paths now include Income-Based Repayment and a PSLF Buyback process for public servants, with a new Repayment Assistance Plan slated to begin July 1, 2026.